Taxes are an essential, if largely unwanted part of life. No matter what line of business you are in, or how many members of staff you employ, there will always be taxes to calculate. And, without exception there are deadlines for each and every type of tax to be filed and paid. So, do you know when to file taxes in Canada?
Many businesses employ a professional financial body to assist them with their taxes. However, the onus is on you to provide your chosen body with the relevant information in good time. Ultimately it is you who will suffer from penalties and interest if information and payments are submitted late, not your accountant.
There are a multitude of different taxes to take into consideration however, here we will look at the filing dates for the most prominent business taxes:-
- GST/HST – Goods and sales/harmonised sales tax. Your GST/HST form will show the due date of your return, determined by your reporting period. If your returns are filed monthly or quarterly then you must pay any tax due within one month after the reporting period. For example, if your return is due on 31st March then the tax must be paid by 30th April. For Annual returns there is a 3 month period of grace for payment from the end of the fiscal period. The exceptions to these rules are: – individuals who are reporting a business income, annual filers and those whose fiscal year ends 31st December. For these any payments must be made by 30th April. However, you have until June 15th to file the actual return.
- Corporation taxes are often paid in instalments, usually quarterly. The dates for filing these taxes are normally March 15th, June 15th, September 15th and December 15th. The actual returns themselves should be filed no later than 6 months after your corporation year end, i.e. if the year ends on 31st March your return must be filed by 30th September.
- Payroll taxes are much more regular. These are based on the date your employees are paid rather than the actual period of payment. If you are a new or a regular remitter, i.e. you pay monthly then all remittances must be filed and paid on or before the 15th of the month following the declaration. For quarterly payers, taxes must be filed and paid by the 15th day of the month following each reporting period. The quarters and payment dates are as follows:- Period January to march – payment date 15th April; Period April to June – payment date 15th July; Period July to September – payment date 15th October; Period October to December – payment date 15th January. These periods cannot be changed to suit your business reporting period.
So now you know when to file your taxes in Canada. If you are uncertain of any dates or are unable to make the due dates it is important that you consult with your professional body and the Canada Revenue Agency.
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